It cited a reduction in the bank's riskier assets to £16.9 billion, from £33.3 billion in 2013, for helping the lender. It also pared down its international presence from 30 countries in 2010, to just six.

Lloyds also revealed that it will give shareholders dividends worth 0.75p per share, which totals £535 million. Around £3 million will go to shareholders while £130 million will go to the government.